Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Sunshine Insurance Group Company Limited (6963.HK)

Company Dividend Discount ModelIndustry: Insurance - DiversifiedSector: Financial Services

Valuation Snapshot

Stable Growth$5.85 - $8.40$7.10
Multi-Stage$9.53 - $10.45$9.98
Blended Fair Value$8.54
Current Price$2.96
Upside188.49%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022202120202019
DPS20.38%0.00%0.170.180.150.130.030.070.000.000.000.00
YoY Growth---5.23%18.56%12.89%286.96%-48.48%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--6.52%4.47%3.07%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)9,681.00
(-) Cash Dividends Paid (M)4,064.00
(=) Cash Retained (M)5,617.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,936.201,210.13726.08
Cash Retained (M)5,617.005,617.005,617.00
(-) Cash Required (M)-1,936.20-1,210.13-726.08
(=) Excess Retained (M)3,680.804,406.884,890.93
(/) Shares Outstanding (M)11,502.0011,502.0011,502.00
(=) Excess Retained per Share0.320.380.43
LTM Dividend per Share0.350.350.35
(+) Excess Retained per Share0.320.380.43
(=) Adjusted Dividend0.670.740.78
WACC / Discount Rate9.27%9.27%9.27%
Growth Rate-2.00%-1.00%0.00%
Fair Value$5.85$7.10$8.40
Upside / Downside97.76%139.78%183.66%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)9,681.009,584.199,488.359,393.469,299.539,206.539,482.73
Payout Ratio41.98%51.58%61.19%70.79%80.40%90.00%92.50%
Projected Dividends (M)4,064.004,943.845,805.686,649.797,476.438,285.888,771.53

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.27%9.27%9.27%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)4,478.624,524.324,570.02
Year 2 PV (M)4,764.454,862.184,960.90
Year 3 PV (M)4,943.645,096.535,252.54
Year 4 PV (M)5,035.165,243.855,458.95
Year 5 PV (M)5,055.195,318.435,592.52
PV of Terminal Value (M)85,315.7989,758.3994,384.15
Equity Value (M)109,592.87114,803.69120,219.08
Shares Outstanding (M)11,502.0011,502.0011,502.00
Fair Value$9.53$9.98$10.45
Upside / Downside221.90%237.20%253.11%

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